Background Of The study:

The internal and external environmental factors always influence the

organizational environment and the activation and decision-making of an
organization. Every organization has an environment that influences the decisions
or the growth of an organization. The organizational environment is always
dynamic and constantly changing. Today's change is very frequent, every change
has many challenges, and managers and leaders of organizations need to be aware
of changes in the environment. An organization's environment is made up of its
surroundings - anything that positively or unfavorably affects its operations. In this
study we are broadly analyzing what is internal and external environment also how
these environmental factors has impacted on East West University, how East West
university may get benefits from these environmental factors by analyzing these.

General Environment: The general environment includes,

1. Political legal factors

2. Sociocultural factors
3. Demographic factors
4. Economic factors
5. Technological factors

General environment try to shape the task environment and identify the
opportunities and threats of the organization. This environment may not directly
affect the organization but it may influence the activities of the organization. The
organization does not have any control over these factors.

1. Political legal factors:

The government of a country intervenes in the country's economy by formulating

policies / rules for companies. There are various policies were laid out, including
import policy, export policy, fiscal policy, investment policy, drug policy,
competition policy, consumer protection policy, etc. if we see in our country in
past years there were many strikes so many occurrences which has impact on every
organization growth also other activities. These create threats of any organization.
For this Managers must be able to understand the impact of the activities of these
factors. Government agencies include different ministries and commissions, the
Office of the Director of Import and Export, the Investment Committee, and the
State Tax Administration.

Lobbyists include the Bangladesh Consumers Association, various chambers of

industry and commerce, employers' associations, environmental protection
campaigns and the like. Because pressure groups impose restrictions on business
managers, managers must have a clear understanding of the behavior of these
groups.

2. Sociocultural factors:

Sociocultural power refers to the way in which changes in social customs and
values affect the industry. Like the other forces discussed here, social change
creates opportunities and threats. An important social movement in recent decades
is the trend to raise awareness about health. Companies that spot opportunities
early will generally make substantial profits. Pepsi took the lead in launching low-
sugar cola and fruit drinks, thereby gaining market share from competitor Coca-
Cola. At the same time, health trends pose a threat to many industries. For
example, as consumers become more aware of the health effects of smoking, the
tobacco industry is declining.

3. Demographic factors:

It is mainly related with the population which is gender, age, race, social class and
many more. Like previous factors in the general environment, demographic factor
also have opportunities and threats for managers and have impact on organizations.
Changes in the age distribution of a population represent an important example of
demographic dynamics. Most developed countries are currently experiencing an
aging population as a result of declining fertility and mortality rates and an aging
baby boom generation.

4. Economic factors:

An organization's economic factor states overall economic system which it

operates. Economic factors are inflation, interest rates and unemployment.
 These factors always affect the demand for products. During inflation, companies
pay more for their resources and to cover higher costs for them they raise the price
of their products. The higher the interest rate, the less customers are willing to
borrow money, and the company itself has to pay more when borrowing. When
unemployment is high, a company has a lot of choice or who to hire, but fewer
people work, so customers have less purchasing power. Every business must have
to analyze the economic environment carefully. Managers must have the ability to
predict economic conditions. For this they can get ready for the upcoming threats
which may affects their organization growth.

5. Technological Factors:

Technological factors include the global transfer of information technology, the

Internet, and biotechnology technologies. There is no denying the fact that the pace
of change in these technological aspects is very rapid.

Changes in technology have a significant impact on business operations in many

ways. The progress of industrialization in any country is largely dependent on the
technological environment. It has a huge impact on technology, product
development, production efficiency and potential competition. Companies that
experience difficulty in changing technology have always experienced more
difficulty than companies that possess reliable technology. The impact of
technological changes occurs primarily with new products, processes, and
materials. The use of new technologies can transform or invigorate the entire
industry. Managers need to be aware of technical factors. If your decision to invest
in a new technology is not accurate, you need to adapt. When formulating a
strategic management strategy, it is necessary to monitor the technological
development of a particular industry. Early adoption of new technologies helps
managers achieve higher market share.